STOCKS: FIRST NEGATIVE ANNUAL RETURN SINCE 2002

摘要

Utility stocks as a group took another sharp tumble in the fourth quarter of 2008, with the Edison Electric Institute (Eel) Index posting a negative 9.9-percent return, its second negative quarterly return in a row, and the third in the last four quarters. Compared to the broader markets, however,rnthe Index fared relatively well. The worsening of the global credit crisis following the bankruptcy of Lehman Brothers in September combined with investors' recognition that a severe economic recession had taken hold to drive the major market averages down more than double the decline of the EEI Index. ThernDow Jones returned a negative 18.9 percent for the quarter while the s&P 500 and Nasdaq Composite slid more than 20 percent.rnFor full-year 2008, the eei Index returned negative 25.9 percent, its first negative annual return since 2002. However, even that was enough to surpass the broader averages, as the Dow and s&P 500 returned negative 31.9 percent and negative 37.0 percent, respectively. The more volatile Nasdaq declined over 40 percent for the year. (See Table 1.)